On what basis will the withdrawals occur from the franchisee's account by Face Foundrie Franchising L.L.C.?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
At least thirty (30) days before opening the Facial Bar, Franchisee shall provide Franchisor with Franchisee's bank name, address, account number, and a voided check from Franchisee's bank account.
Franchisee shall also execute an Electronic Funds Withdrawal and Credit Card Authorization, which is attached as Exhibit D to this Agreement (which also includes a credit card authorization in favor of Franchisor authorizing Franchisor to charge all amounts Franchisee or its affiliates owe to Franchisor under this Agreement or any other agreement between Franchisee and its affiliates and Franchisor), and give copies to Franchisee's bank and to Franchisor.
Franchisee shall immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in
account numbers. Franchisor reserves the right to require Franchisee to pay any fees due under this Agreement by other means Franchisor may specify from time to time. If Franchisee does not report Gross Sales in the time period required by Franchisor, Franchisor may process an automated bank draft (or other method used by Franchisor to collect funds) based on one hundred twenty percent (120%) of the last Royalty Fee, Marketing Contribution, and other fees that Franchisor collected. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor collects are less than the fees Franchisee actually owes Franchisor, Franchisor will debit Franchisee's account for the balance on a day Franchisor specifies. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor debits are greater than the fees Franchisee actually owes Franchisor, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following month.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, at least 30 days before opening their Facial Bar, franchisees must provide Face Foundrie with their bank name, address, account number, and a voided check. Franchisees are also required to complete an Electronic Funds Withdrawal and Credit Card Authorization form, which authorizes Face Foundrie to charge all amounts the franchisee owes under the Franchise Agreement or any other agreement between the franchisee and Face Foundrie. Copies of this authorization must be given to both the franchisee's bank and to Face Foundrie.
If a Face Foundrie franchisee fails to report Gross Sales in the required time frame, Face Foundrie may initiate an automated bank draft for 120% of the last Royalty Fee, Marketing Contribution, and other fees collected. If the actual fees owed exceed this amount, Face Foundrie will debit the franchisee's account for the remaining balance. Conversely, if the debit exceeds the actual fees, Face Foundrie will credit the excess amount to the franchisee's account during the following month.
It is important that Face Foundrie franchisees immediately notify Face Foundrie of any changes to their banking relationship, including changes to account numbers. Face Foundrie also retains the right to specify alternative payment methods for fees due under the agreement. This ensures Face Foundrie can collect owed amounts in a timely manner, while also providing a mechanism for correcting any over- or under-collection of fees.